What is required from Beehive Homes before an Assignee can transfer any equity interest?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ssignment to Corporation.]**
-
- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
- d) the creation of new or additional equity interests in Assignee; or
- e) any amendment of the terms of any organizational documents relating to Assignee.
Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Franchise including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.
[Alternate paragraph to be used for Assignment to Partnership.]
-
- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Partners may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Partner;
- d) the creation of new or additional equity interests in Assignee;
- e) the change of a limited partnership interest to a general partnership interest or of a general partnership interest to a limited partnership interest; or
- f) any amendment of the terms of any partnership agreement or other organizational documents relating to Assignee.
Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Home including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.
[Alternate paragraph to be used for Assignment to Limited Liability Company.]
-
- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Members may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Member;
- d) the creation of new or additional equity interests in Assignee; or
- e) any amendment of the terms of any operating agreement or other organizational documents relating to Assignee.
Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Home including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.
-
- Assignor, Assignee, and [Shareholders/Partners/Members] represent and warrant that:
- a) they are the only persons or entities with equity interests in Assignee and their ownership interests are as shown on Exhibit A; and
- b) there is no obligation or intention to issue additional equity interests in Assignee.
-
- If any [Shareholders/Partners/Members] are trustees or trusts:
- a) the beneficial interests in the trusts may not be assigned, transfers to successor trustees or special trustees may not be made even if the transfer is provided for in any trust agreement, and the trust agreement may not be amended without the prior written consent of Bee Hive Homes;
- b) Exhibit A lists all persons who are trustees of any nature or have beneficial interests in any [Shareholder's/Partner's/Member's] trust(s);
- c) this Assignment is not a consent to any future transfers of equity interest(s) of Assignee to any [Shareholder's/Partner's/Member's] trust beneficiaries based on any
condition including, but not limited to, attainment of a certain age or occurrence of any event.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, any assignment, transfer, or pledge of any equity interest in the Assignee requires the prior written consent of Beehive Homes. This restriction applies to transfers within any entity that is a Shareholder, Partner, or Member, depending on the business structure of the Assignee (Corporation, Partnership, or Limited Liability Company, respectively). This requirement extends to preventing the creation of new or additional equity interests in the Assignee without Beehive Homes' prior written consent.
For corporations, Beehive Homes requires that a specific legend be included on all issued and outstanding shares of stock, stating that the stock cannot be pledged, sold, assigned, or otherwise transferred without Beehive Homes' prior written consent. This legend serves as a constant reminder of the transfer restrictions and protects Beehive Homes' interests. Additionally, Beehive Homes may request a copy of all outstanding certificates of stock of the Assignee to ensure compliance with these transfer restrictions.
These stipulations are designed to ensure that Beehive Homes maintains control over who has an equity interest in its franchisees. This control helps protect the brand's reputation and ensures that all equity holders meet Beehive Homes' standards. Prospective franchisees should be aware of these restrictions and factor them into their business and estate planning. It is important to note that Beehive Homes has not reviewed any of the Assignee's organizational documents or any trust documents of any Shareholder's, Partner's, or Member's trust, so the assignment does not constitute approval of those documents.